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Sahm Adrangi Aims at St. Joe Company

In 2011, the Chief Investment Officer of Kerrisdale Capital, Sahm Adrangi, made a name for himself when he successfully shorted a number of Chinese companies, exposing several of them for fraudulent practices. Recently, Sahm Adrangi and Kerrisdale Capital aimed their sights on St. Joe Company, whose valuation was is currently listed at $1 billion. According to the report, remote and undeveloped swampland have rendered much of St. Joe Company’s assets as “over-valued and over-hyped.” Upon assessing the true value of St. Joe Company’s holdings, Sahm Adrangi’s evaluation revealed that it considerably less than what is being publicly advertised – 40 percent less to be exact. The gross misjudgment regarding St. Joe Company’s valuation, is also exacerbated by the fact that they are experiencing issues with their largest shareholder, who may be forced to liquidate a large portion of their stock, as well as the fact that commercial development has been stalled for the better part of the last decade.

The reason for St. Joe Company’s high valuation, is due to their plan regarding the building of a retiree destination, as well as a commercial business center in the Panama Beach area. The problem lies in the fact that the majority of their land is not near the highly sought-after beach area, being that this property has already been commercialized. Much of what’s left consists of land that is far less desirable.

Today, Fairholme Fund is the largest shareholder of St. Joe Company, with 22.7 million shares, but recent changes regarding the Securities and Exchange Commission will require that 10 million of those shares are liquidated in order to remain in compliance. Being that these shares would need to be liquidated by December 1, 2018, Sahm Adrangi says that there are not enough trading days left to accomplish this feat without affecting the share price of St. Joe Company adversely. The role of Bruce Berkowitz, who acts as the chairman of the board at St. Joe Company, as well as the fund manager for Fairholme Fund, also presents a conflict of interest that may require him and two additional fund directors to step down. This will also play a negative role in the share price.

https://www.benzinga.com/topic/sahm-adrangi

Sahm Adrangi, A Global Leader in Finance and Hedge Funds

Kerris Capital, a private investment manager that focuses on unique event-driven situations and long-term value investments recently published a negative report. The article describes the short position of the firm concerning Proteostasis Therapeutics. The corporation in question is a biopharmaceutical establishment that deals with the development phase of different drugs. Their principal focus is a drug entrant referred to as PTI-428. This drug was initially designed for the treatment of cystic fibrosis. When the FDA gave Breakthrough Therapy and the Orphan Drug designations, the stock prices of Proteostasis increase at a 100% rate.

According to Sahm Adrangi and Kerrisdale’s system analysis, the likelihood is that PTI-428 is not effective. The company detected some low-quality facts and disturbing omissions in the product details made available to the public by Proteostasis. Owing to the short position Kerrisdale Capital and Sahm Adrangi have regarding Proteostasis Therapeutics once the prices of the shares decrease the company might benefit.

Sahm Adrangi established Kerrisdale Capital Management and currently serves as the Chief Investment Officer of the establishment. Since its inception, Kerrisdale has always participated in all matters regarding the development of the company. Sahm began Kerrisdale Capital with less than a million dollars, but by July 2017, the firm was handling over 150 million dollars.

Adrangi is popularly known due to his short selling as well as publishing research endeavors. His views concerning stocks include under followed longs and overhyped shorts. Nevertheless, these views are not yet well-known in the market. The research carried out by Kerrisdale corrects any misconceptions associated with the critical business opportunities of various establishments. The company then shares the research on Kerrisdale’s website, Twitter, and other investment related websites as well.

Over the years, Mr. Sahm Adrangi has built a name for himself by shorting and also exposing several fraudulent Chinese businesses including China Marine Food Group, Lihua International, and China-Biotics, among others. His research has led to prosecution measures against China Education Alliance and ChinaCast Education Corporation from the Exchange and Securities Commission.

Additionally, Sahm Adrangi typically specializes in particular industries mostly because of his experience and competence. One of these industries includes the biotechnology field. In the recent past, Kerrisdale has published lots of information on development-stage corporations including Unilife, Pulse Biosciences, Bavarian Nordic and Sage Therapeutics. The other fields include telecommunications and mining prospects.

http://www.businessinsider.com/meet-hedge-funder-sahm-adrangi-2013-10